Tag Archives: Wunderlich Securities

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LRR Energy, L.P. Prices Public Offering of Common Units

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By Business Wirevia The Motley Fool

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LRR Energy, L.P. Prices Public Offering of Common Units

HOUSTON–(BUSINESS WIRE)– LRR Energy, L.P. (NYS: LRE) (“LRR Energy” or “LRE“) announced today the pricing of an underwritten public offering of 6,000,000 common units, of which 3,000,000 common units are being offered by LRR Energy and 3,000,000 common units are being offered by LRR Energy’s sponsor, Lime Rock Resources, at a public offering price of $16.84 per common unit. The underwriters have been granted a 30-day option to purchase up to 700,000 additional common units from LRR Energy and up to 200,000 additional common units from Lime Rock Resources. The offering is scheduled to close on March 22, 2013, subject to customary closing conditions.

LRE‘s second lien term loan requires LRE to use 50% of the net cash proceeds from any equity offering to repay borrowings outstanding under LRE‘s term loan. LRE is seeking, and expects to receive, a waiver of this requirement from the lender under LRE‘s term loan. In the event LRE receives the waiver prior to the closing of the offering, LRE plans to use the net proceeds from the offering and from any exercise of the underwriters’ option to purchase additional common units from LRE to repay borrowings outstanding under LRE‘s revolving credit facility. In the event LRE does not receive the waiver prior to the closing of the offering, LRE will use 50% of the net proceeds from the offering, or approximately $24.2 million, to repay borrowings outstanding under LRE‘s term loan and the remaining net proceeds to repay borrowings outstanding under LRE‘s revolving credit facility. LRE will not receive any proceeds from the sale of the common units held by Lime Rock Resources. LRE intends to use borrowings (including re-borrowings of the net offering proceeds) under its revolving credit facility to fund the purchase price for LRE‘s previously announced acquisition of certain oil and natural gas properties in the Mid-Continent region in Oklahoma from Lime Rock Resources.

Raymond James, Barclays and UBS Investment Bank are acting as joint book-running managers of the offering. Baird, Oppenheimer & Co., Stifel, Ladenburg Thalmann & Co. Inc., MLV & Co. and Wunderlich Securities are acting as co-managers of the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be …read more
Source: FULL ARTICLE at DailyFinance

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LRR Energy, L.P. Announces Public Offering of Common Units

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By Business Wirevia The Motley Fool

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LRR Energy, L.P. Announces Public Offering of Common Units

HOUSTON–(BUSINESS WIRE)– LRR Energy, L.P. (NYS: LRE) (“LRR Energy” or “LRE“) announced today that it plans to conduct an underwritten public offering of 6,000,000 common units, of which 3,000,000 common units are being offered by LRR Energy and 3,000,000 common units are being offered by LRR Energy’s sponsor, Lime Rock Resources, pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. The underwriters will be granted a 30-day option to purchase up to 700,000 additional common units from LRR Energy and up to 200,000 additional common units from Lime Rock Resources.

LRE‘s second lien term loan requires LRE to use 50% of the net cash proceeds from any equity offering to repay borrowings outstanding under LRE‘s term loan. LRE is seeking, and expects to receive, a waiver of this requirement from the lender under LRE‘s term loan. In the event LRE receives the waiver prior to the closing of the offering, LRE plans to use the net proceeds from the offering and from any exercise of the underwriters’ option to purchase additional common units from LRE to repay borrowings outstanding under LRE‘s revolving credit facility. In the event LRE does not receive the waiver prior to the closing of the offering, LRE will use 50% of the net proceeds from the offering to repay borrowings outstanding under LRE‘s term loan and the remaining net proceeds to repay borrowings outstanding under LRE‘s revolving credit facility. LRE will not receive any proceeds from the sale of the common units held by Lime Rock Resources. LRE intends to use borrowings (including re-borrowings of the net offering proceeds) under its revolving credit facility to fund the purchase price for LRE‘s previously announced acquisition of certain oil and natural gas properties in the Mid-Continent region in Oklahoma from Lime Rock Resources.

Raymond James, Barclays and UBS Investment Bank are acting as joint book-running managers of the offering. Baird, Oppenheimer & Co., Stifel, Ladenburg Thalmann & Co. Inc., MLV & Co. and Wunderlich Securities are acting as co-managers of the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

New Source Energy Partners, L.P. Closes Over-Allotment Option

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By Business Wirevia The Motley Fool

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New Source Energy Partners, L.P. Closes Over-Allotment Option

OKLAHOMA CITY–(BUSINESS WIRE)– New Source Energy Partners L.P., a Delaware limited partnership (NYS: NSLP) (the “Partnership”), announced today that underwriters of its recently completed initial public offering have purchased an additional 250,000 common units at $20.00 per unit granted to them in the Underwriting Agreement dated February 7, 2013. New Source Energy Partners‘ initial public offering of 4,000,000 common units, representing limited partnership interests in New Source Energy Partners, closed on February 13, 2013.

Net proceeds received by the Partnership from the sale of the additional common units were approximately $4.65 million in the aggregate, after deducting underwriting discounts, commissions and expenses. The public now owns an approximate 54.8% limited partner interest in the Partnership.

Baird, Stifel Nicolaus Weisel, BMO Capital Markets and Oppenheimer & Co. acted as joint book-running managers for the offering. Janney Montgomery Scott, Stephens Inc. and Wunderlich Securities acted as co-managers for the offering. Copies of the prospectus related to the offering may be obtained from the underwriters as follows:

Robert W. Baird & Co. Incorporated

Attention: Syndicate Department

777 East Wisconsin Avenue

Milwaukee, WI 53202-5391

syndicate@rwbaird.com

(800) 792-2413

 

…read more
Source: FULL ARTICLE at DailyFinance
Business, Finance, Occupation & Industry

2 Big Reasons Yahoo! Won't Buy Zynga

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By Steve Symington, The Motley Fool

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Shares of Zynga popped by as much as 11% Monday after Wunderlich Securities analyst Blake Harper suggested it might make sense for Yahoo! to acquire the social game maker.

To be sure, the rumor mill has been buzzing ever since word got out last week that Jackie Reses (Yahoo’s head of mergers and acquisitions) let it slip to employees that the company was working on two “significant” acquisitions. 

Unfortunately for the Zynga bulls, I just don’t see a buyout happening for myriad reasons. For the sake of brevity, however, here are two of the biggest things that would make Yahoo! think twice about entering the social gaming space via Zynga.

Sure enough, shares of Zynga lost ground Tuesday after analysts at Macquarie Capital poured cold water on the buyout thesis, saying “We believe that Zynga is unlikely to be acquired anytime soon, as we don’t believe that Mark Pincus wants to sell at this time.”  

Yep, that’s the same Mark Pincus named The Motley Fool’s Worst CEO of the Year in 2012. Still, even if Yahoo! actually wanted to buy his company, would you blame him for not wanting to sell? After all, Yahoo! CEO Marissa Mayer has been taking flak this week for her notoriously stringent hiring standards and, given Pincus’ painful past transgressions, something tells me any Zynga buyout scenario likely wouldn’t involve keeping him around.

Then again, perhaps that wouldn’t be much of an issue anyway, since Pincus hasn’t shown much restraint with regard to dumping his own personal stake in his company. Nonetheless, his persistent demonstrations of a lack of faith in Zynga don’t bode well for its prospects, especially when we remember eight of its high-profile executives voluntarily packed their bags last year between August and September.

All things considered, none of this is particularly encouraging to potential suitors.

Stronger, cheaper acquirees
With Zynga’s market capitalization at just under $3 billion, Yahoo!’s $4 billion in cash and liquidity (as of the end of 2012) would require a good amount of their dry powder to acquire the company outright. Even accounting for Zynga’s own veritable cash pile of $1.3 billion, the fact remains Zynga is still barely profitable. In addition, I’m hardly alone in believing its business is simply unsustainable over the long run.

Besides, Harper’s mention of Zynga seemed more of an afterthought following more serious speculation about why it might make sense for Yahoo! to purchase smaller companies like restaurant reservation specialist OpenTable or review provider Yelp — the respective market caps of which are significantly lower ($1.4 billion and $1.5 billion).

In addition, the functions of Yelp and OpenTable also appear to more closely align with Mayer’s stated goals of focusing on making Yahoo! an integral part in consumers’ “daily habits,” including things like searching the Internet, checking finance, and handling email. If Mayer had any significant interest in expanding Yahoo’s gaming presence, you’d think she would have made …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Forces Behind the Dow's Continued Rally

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By John Divine, The Motley Fool

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Yawn — another day, another record high close for the Dow Jones Industrial Average . Despite early data from China that disappointed Wall Street, markets rallied back to continue a remarkable bull run as a prominent measure of volatility registered its lowest reading in more than five years. Adding 50 points, or 0.35%, to close at 14,447, the Dow ended Monday at a new record, its fifth record close in as many days.

A major reason behind the rise, Boeing added 2.1% on reports that the aerospace mainstay has a surefire fix in the mix for safety issues with its 787 Dreamliner. The issues go back to the beginning of the year, when a fire erupted on a Dreamliner aircraft that touched down in Boston. The comments today from Boeing executive Randy Tinseth, who also said the company was boosting production, rallied both Boeing and the Dow. Boeing’s daily swings, as the index’s ninth heaviest weighted component, meaningfully sway the Dow’s performance.

Lest we get complacent with what seems to be nothing but good news, General Electric assumes the important role of bringing us down to Earth today, falling 0.6%. Despite nominating former SEC Chairman Mary Schapiro to its board of directors, comments from CEO Jeff Immelt saying domestic fiscal uncertainty would stem meaningful capital spending sent shares lower today.

Shareholders cheered the news today from VeriFone Systems , which added as much as 8% after hours after announcing CEO Douglas Bergeron is stepping down. The fact that the stock rose so dramatically on the transition shows that shareholders and the board of directors are on the same page, which is a good place to start for a company that recently cut its first- and second-quarter guidance.

Finally, zooming 10.4% higher Monday, Zynga shares were some of the hottest in the market, as takeover talk fueled a buying frenzy. Sometimes, like today, all it takes is hypothetical talk from a single analyst to make a stock go crazy. Suggesting Yahoo! might want to acquire the mobile and online gaming company, a Wunderlich Securities analyst got investors seriously considering the lucrative what-if scenario.

Even after today’s 10% surge, Zynga’s post-IPO performance has been decidedly dreadful, and investors are beginning to wonder whether it’s “game over” for this newly public company. Being so closely tied to the world’s largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it’s a buy or a sell in our new premium research report. Don’t even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.

…read more
Source: FULL ARTICLE at DailyFinance

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Why Zynga Shares Popped

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By Evan Niu, CFA, The Motley Fool

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Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of Zynga have popped today by as much as 11% on speculation that Yahoo! could acquire the social game maker.

So what: Wunderlich Securities analyst Blake Harper is the source of the speculation. He suggested that the search engine could scoop up Zynga, as it’s been on an acquisitive streak of late. New CEO Marissa Mayer has made many changes at Yahoo!, including numerous acquisitions related to social media, such as Alike and Snip.it, among others.

Now what: Harper mentions that recent speculation revolved around possible targets like restaurant reservation maker OpenTable and reviewer Yelp, but he believes that Zynga would also make sense. The analyst also considers Tumblr and FourSquare as possible candidates. Harper notes that Yahoo! has lost market share in display advertising since Mayer became CEO, and expanding the company’s social presence would be the right move.

Interested in more info on Zynga? Add it to your watchlist by clicking here.

Zynga’s post-IPO performance has been dreadful, and investors are beginning to wonder if it’s “game over” for this newly public company. Being so closely tied to the world’s largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it’s a buy or a sell in our new premium research report. Don’t even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.

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Source: FULL ARTICLE at DailyFinance

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Time Warner Is Spinning Off Time Inc. Magazines

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By The Associated Press

Time Warner is spinning of Time Inc. magazines

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By RYAN NAKASHIMA

LOS ANGELES (AP) – Time Warner Inc. (TWX) said Wednesday that it will spin off the magazine unit behind Time, Sports Illustrated and People into a separate, publicly traded company by the end of the year.

CEO Jeff Bewkes said in a statement Wednesday that the decision to split off the Time Inc. magazine company will give Time Warner “strategic clarity” and enable it to focus on its TV networks including TNT, HBO and CNN, and its Warner Bros. studio, which produces movies and TV shows.

He said the move would create value for shareholders, similar to the company’s previous spin-offs of Time Warner Cable (TWC) and AOL (AOL).

In recent weeks, Time Warner had been in talks to combine all of Meredith’s magazines with Time Inc.’s lifestyle titles such as People, InStyle and Real Simple. But talks broke down over a value for the combined company and over which magazines from Time Inc. would be included in the mix, according to a person familiar with the matter. The person was not authorized to speak publicly and spoke on condition of anonymity.

Meredith said Wednesday that it respected Time Warner‘s decision and hoped to work with it on future opportunities. Meredith publishes magazines aimed at women such as Better Homes and Gardens, Fitness and Family Circle.

Time Warner shares rose 79 cents, or 1.4 percent, to $56.25 in after-hours trading following the announcement, after closing up 41 cents at $55.46. Shares of Des Moines, Iowa-based Meredith fell 80 cents, or 2 percent, to $39.50 in after-hours trading after closing down 86 cents at $40.30.

Analysts have estimated that the Time Inc. division is worth around $2.5 billion.

Time Warner said the spin-off would be tax-free to its shareholders.

The move completes the years-long unwinding of a media and telecoms giant formed in 2001 when America Online, an Internet access company, used $147 billion worth of inflated stock to buy Time Warner, in what has been regarded as the worst corporate merger of all time.

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Expected company synergies never materialized. Over the years, Time Warner moved to spin off the cable TV hookup business as well as AOL in order to focus on its profitable and growing TV and movie businesses.

Matthew Harrigan, an analyst with Wunderlich Securities, said shareholders have wanted the spin-off of the challenged magazine business for some time, mainly because the rise of Internet advertising has steadily eroded ad revenue from print publications.

Investors had come to see the magazine business as a drag on revenues and profits. According to the Publishers Information Bureau, U.S. magazine advertising revenue fell 3 percent in 2012 to $21 billion.

“Investors like pure plays and some instances where there are genuine synergies,” he said. “I think they concluded it was a bit of an odd duck.”

The person said …read more
Source: FULL ARTICLE at DailyFinance